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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)September 30, 2021December 31, 2020
Domestic(1):
Commercial and financial:
Fund Finance(2)
$12,367 $11,531 
Leveraged loans3,407 2,923 
Overdrafts2,352 1,894 
Other(3)
2,140 2,688 
Commercial real estate2,384 2,096 
Total domestic22,650 21,132 
Foreign(1):
Commercial and financial:
Fund Finance(2)
7,368 4,432 
Leveraged loans1,317 1,242 
Overdrafts1,462 1,088 
Other(3)
— 31 
Total foreign10,147 6,793 
Total loans(2)
32,797 27,925 
Allowance for credit losses(95)(122)
Loans, net of allowance$32,702 $27,803 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $6,282 million loans to real money funds, $9,752 million private equity capital call finance loans, $993 million loans to business development companies and $2,412 million collateralized loan obligations in loan form as of September 30, 2021, compared to $6,391 million loans to real money funds, $8,380 million private equity capital call finance loans and $821 million loans to business development companies as of December 31, 2020.
(3) Includes $1,532 million securities finance loans, $589 million loans to municipalities and $19 million other loans as of September 30, 2021 and $1,911 million securities finance loans, $754 million loans to municipalities and $54 million other loans as of December 31, 2020.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated:
September 30, 2021Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$24,936 $1,963 $26,899 
Speculative5,180 383 5,563 
Special mention118 38 156 
Substandard164 — 164 
Doubtful15 — 15 
Total(1)
$30,413 $2,384 $32,797 
December 31, 2020Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$20,859 $1,724 $22,583 
Speculative4,852 372 5,224 
Special mention67 — 67 
Substandard34 — 34 
Doubtful17 — 17 
Total(1)
$25,829 $2,096 $27,925 
(1) Loans Include $3,814 million and $2,982 million of overdrafts as of September 30, 2021 and December 31, 2020 respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of September 30, 2021. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20212020201920182017PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$2,696 $14 $376 $2 $135 $— $13,120 $16,343 
Speculative974 473 719 519 455 67 457 3,664 
Special mention— — 70 29 19 — — 118 
Substandard— 5 71 56 9 — — 141 
Total commercial and financing$3,670 $492 $1,236 $606 $618 $67 $13,577 $20,266 
Commercial real estate:
Risk Rating:
Investment grade$321 $129 $383 657 $276 $197 $— $1,963 
Speculative120 49 166 20 — 28 — 383 
Special mention— — — 38 — — — 38 
Total commercial real estate$441 $178 $549 $715 $276 $225 $— $2,384 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$3,655 $— $— $— $— $— $4,938 $8,593 
Speculative433 197 294 254 146 31 161 1,516 
Substandard— — — 23 — — — 23 
Doubtful— — — — 15 — — 15 
Total commercial and financing$4,088 $197 $294 $277 $161 $31 $5,099 $10,147 
Total loans$8,199 $867 $2,079 $1,598 $1,055 $323 $18,676 $32,797 
(1) Any reserve associated with accrued interest is not material. As of September 30, 2021, accrued interest receivable of $82 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2020:


(In millions)20202019201820172016PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,894 $388 $4 $167 $200 $— $12,836 $15,489 
Speculative432 942 822 610 43 — 597 3,446 
Special mention— 28 — 39 — — — 67 
Substandard— 5 — — 29 — — 34 
Total commercial and financing$2,326 $1,363 $826 $816 $272 $— $13,433 $19,036 
Commercial real estate:
Risk Rating:
Investment grade$178 $383 $688 $277 $197 $— $— $1,723 
Speculative120 166 58 — — 29 — 373 
Total commercial real estate$298 $549 $746 $277 $197 $29 $— $2,096 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$1,028 $— $— $— $— $— $4,343 $5,371 
Speculative283 401 346 162 26 66 121 1,405 
Doubtful— — — 17 — — — 17 
Total commercial and financing$1,311 $401 $346 $179 $26 $66 $4,464 $6,793 
Total loans$3,935 $2,313 $1,918 $1,272 $495 $95 $17,897 $27,925 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2020, accrued interest receivable of $72 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended September 30, 2021
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$74 $12 $14 $2 $19 $— $121 
Charge-offs(1)— — — — — (1)
Provision(4)— 1 — 1 — (2)
Other(2)
(1)— — — — — (1)
Ending balance$68 $12 $15 $2 $20 $— $117 
(1) Includes $11 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
(2) The amount includes primarily foreign currency translation.
Nine Months Ended September 30, 2021
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$97 $17 $8 $3 $22 $1 $148 
Charge-offs(2)— — — — — (2)
Provision(24)(5)7 (1)(2)(1)(26)
Other(2)
(3)— — — — — (3)
Ending balance$68 $12 $15 $2 $20 $— $117 
(1) Includes $11 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
(2) The amount includes primarily foreign currency translation.
.
Three Months Ended September 30, 2020
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$113 $20 $8 $3 $18 $1 $163 
Charge-offs(2)
(14)— — — — — (14)
Provision3 — — — (3)— — 
Foreign currency translation4 — — — — — 4 
Ending balance$106 $20 $8 $3 $15 $1 $153 
(1) Includes $15 million allowance for credit losses on Fund Finance loans and $5 million on other loans.
(2) Related to the sale of leveraged loans in the third quarter of 2020.
Nine Months Ended September 30, 2020
Commercial and Financial
(In millions)Leveraged LoansOther LoansCommercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$61 $10 $2 $— $19 $1 $93 
Charge-offs(1)
(33)— — — — — (33)
Provision73 10 6 3 (4)— 88 
Foreign currency translation5 — — — — — 5 
Ending balance$106 $20 $8 $3 $15 $1 $153 
(1) Primarily related to the sale of leveraged loans in the third and third quarters of 2020.